Venture capital group requests temporary reinstatement of...

1of6Daniel Kravtsov works on his computer late at night at his home in Hayes Valley — a time when he can connect with his team in Russia. Kravtsov is one of thousands of foreign entrepreneurs who trying to make it in the U.S.Photo: Nick Otto, Special to the Chronicle

2of6Daniel Kravtsov works on his computer late at night at his home in Hayes Valley. Kravtsov is one of thousands of foreign entrepreneurs who try and make it in the U.S. To do so, foreigners often have to jump through hoops to succeed. As a Russian immigrant, most of Kravtsov's team is still in Russia (which he has been unable to bring them over to the U.S. because of strict visa laws). In order to work with his team overseas, Kravtsov must work from until 3 a.m. every night (after a full work day).Photo: Nick Otto, Special to the Chronicle

3of6Daniel Kravtsov works on his computer late at night at his home in Hayes Valley. Kravtsov is one of thousands of foreign entrepreneurs who try and make it in the U.S. To do so, foreigners often have to jump through hoops to succeed. As a Russian immigrant, most of Kravtsov's team is still in Russia (which he has been unable to bring them over to the U.S. because of strict visa laws). In order to work with his team overseas, Kravtsov must work from until 3 a.m. every night (after a full work day).Photo: Nick Otto, Special to the Chronicle

4of6Daniel Kravtsov works on his computer late at night at his home in Hayes Valley. Kravtsov is one of thousands of foreign entrepreneurs who try and make it in the U.S. To do so, foreigners often have to jump through hoops to succeed. As a Russian immigrant, most of Kravtsov's team is still in Russia (which he has been unable to bring them over to the U.S. because of strict visa laws). In order to work with his team overseas, Kravtsov must work from until 3 a.m. every night (after a full work day).Photo: Nick Otto, Special to the Chronicle

5of6Daniel Kravtsov works on his computer late at night at his home in Hayes Valley. Kravtsov is one of thousands of foreign entrepreneurs who try and make it in the U.S. To do so, foreigners often have to jump through hoops to succeed. As a Russian immigrant, most of Kravtsov's team is still in Russia (which he has been unable to bring them over to the U.S. because of strict visa laws). In order to work with his team overseas, Kravtsov must work from until 3 a.m. every night (after a full work day).Photo: Nick Otto, Special to the Chronicle

6of6Daniel Kravtsov works on his computer late at night at his home in Hayes Valley. Kravtsov is one of thousands of foreign entrepreneurs who try and make it in the U.S. To do so, foreigners often have to jump through hoops to succeed. As a Russian immigrant, most of Kravtsov's team is still in Russia (which he has been unable to bring them over to the U.S. because of strict visa laws). In order to work with his team overseas, Kravtsov must work from until 3 a.m. every night (after a full work day).Photo: Nick Otto, Special to the Chronicle

A group of entrepreneurs, companies and venture capitalists that sued the Trump administration last week for delaying a federal rule aimed at helping foreign entrepreneurs grow businesses in the U.S. filed a motion for a preliminary injunction Friday urging the administration to implement the rule, pending a final judgment.

If the court accepts the motion, the Department of Homeland Security would then be required to begin implementing the International Entrepreneur Rule.

The rule was approved by the Department of Homeland Security in January, shortly before President Barack Obama left office. The idea was to give foreign entrepreneurs a chance to remain in the U.S. and develop their companies, even if they don’t qualify for existing visa programs.

The Trump administration delayed the rule before it was scheduled to take effect on July 17 and declared its intent to rescind it altogether.

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And nearly half are Fortune 500 companies.

Video: Brandpoint

The National Venture Capital Association filed a lawsuit in a federal court last week. The group argued that the administration’s decision to delay the rule was unlawful because a law on administrative procedure requires a lengthy notice and public comment period before changes can be made.

The venture capital group argued that the rule, sometimes informally known as a “startup visa,” would have added jobs in the U.S. The Department of Homeland Security had estimated that about 3,000 people would be eligible to stay in the country under the rule.

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The plaintiffs in the case include Omni Labs, a marketing intelligence software company headquartered in San Francisco.

The suspension of the rule adds costs for Omni Labs and another plaintiff, “including the expense of maintaining offices outside the United States, because their co-founders must work abroad,” the motion for an injunction reads.

Trisha Thadani is a City Hall reporter for The San Francisco Chronicle. She previously covered work-based immigration and local startups for the paper’s business section.

Thadani graduated from Boston University with a degree in journalism. Before joining The Chronicle, she held internships at The Boston Globe, USA Today, The Wall Street Journal, and was a Statehouse correspondent for the Worcester Telegram & Gazette.